Discussion:UK Internet entrepreneur with Florida LLC
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Discussion Forum Index --> Tax Questions --> UK Internet entrepreneur with Florida LLC
| 23 May 2007 | |
| I own several websites in the UK and am planning on moving to USA (Florida). I am in the process of forming an LLC in Florida and opening an office there. I will remain a citizen of the UK but be in the U.S. indefinately with a VISA. My question is.....what country will I pay tax to from my business that is based in U.S.? The LLC will be taxed as a partnership (Flow-through entity). I am assuming that I will be U.S. taxes on the income derived from the U.S. Since the UK has a tax treaty with the U.S., I don't believe I will have to pay UK taxes on this UK income. Does anyone agree with me? Thanks. | |
| 24 May 2007 | |
| When you become a U.S. resident you will owe U.S. tax on your worldwide income. If you pay tax to the U.K., then you can claim some or all of those taxes paid as a credit against your U.S. tax. The question of whether you will owe U.K. tax depends on your activities in the U.K., U.K. tax law, and whether the LLC has a permanent establishment in the U.K.
If the LLC is taxed as a partnership and the other partner is a U.K. resident, your U.S. tax filings may be a bit complicated. | |
| 24 May 2007 | |
| 1) If you set up the LLC BEFORE you move to the US, the UK will deem this as a foreign corp controlled and managed by a Brit. This will result in the LLC being taxed in the UK, less any taxes PAID by the LLC. The LLC pays no US tax (because you do instead), so you have a potential double-tax issue. There are ways around this; you will need to speak with an advisor who understands both US and UK taxation to ensure you don't get stuck paying double tax.
2) Once you are in the US, you have a bit of the reverse situation: You will have UK entities which are manged and controlled by a US person (you will be a US person then). There's loads of extra tax filings associated with this. Probably the best thing you can do is get advice prior to moving to ensure that the structure of all your holdings is best between both countries, rather than optimal for just one of them. | |
| 24 May 2007 | |
| There will be no tax in the State of Florida except for the LLC fees or the fees to be a limited partnership in FL. Fl has no state income tax on individuals, partnerships or S corps.... | |
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